Down payment with RSUs?
Wondering if it's a good idea to get a starter home by selling half my RSUs? What's the lowest downpayment percentage I could manage? I'm single, spent all of my 20s in grad school and haven't been working for very long, so net worth not very high. For some reason I feel like owning my home, however. Looking at Berkeley/ SF/ Oakland hills. 1br for now should be ok, can upgrade later. TC around 320k. Good credit.
Market will crash soon or at least dip. You’re better off buying a property in Austin/Dallas/Pittsburgh etc, rent it for higher, get the mortgage pay off started and when you have more saved, you’ll have an increased value asset and may be even buy a second home
How do taxes work? Problem is I don't like those cities! :( How about Portland?
Try to get a two bedroom, with a semi decent school around it. That way you can rent it out after you leave. You can also find a room mate to help cut down on bill cost and your mortgage. However it is hard to find a place that is going to break even with your mortgage via rent income. You should put 20% down to get a better rate. It’s also a very bad time to buy, prices are very high and we are due for a reset.
What's a rental property
Try to go for 2 bed, with parking. You will need it in future. Or go for 1 bed in Berkeley. Easy to let to students when you upgrade.
That's what I was thinking. But some people are like 1br won't resell.
I don't want to live in the South Bay or in suburbia when single but I still want my own home even if by 2020 😇
1bd will resell but they are harder to sell, less people want them. 2bd is much more sought after, while also more expensive.
You can do it but don't liquidate all of your savings. You can also count 401k savings to apply for mortgage. I would buy something in Berkeley. Remember you will have to pay taxes later on the RSUs you will be using.
Its always a good idea to diversify. Sounds like too much of your net worth is in Salesforce. On the other hand, a 1 bed isn't the greatest real estate option as you are competing with apartment complexes. Hard to resell, hard to cash flow as a rental, high HOA. Who knows you might meet a nice girl/guy in a few years and want something bigger. I personally would take those rsus and invest elsewhere.
Is buying real estate near a tech hub actually diversifying?
Yes, people will need a place to live even if tech companies do poorly.